Preheat oven to 350 degrees F. Line 2 baking sheets with parchment paper. Set aside.
In a medium sized bowl, whisk to combine the all purpose flour, baking powder, baking soda, and salt. Set aside.
In a large mixing bowl, add the sugar and lemon zest. Rub the lemon zest into the sugar with your fingertips to help the zest release its oils. Alternatively, you can beat the sugar and zest together with a mixer until combined.
Add the butter to the lemon sugar and mix with an electric mixer with the paddle attachment or with a handheld mixer on medium high speed until light and fluffy, about 2-3 minutes.
Scrape down the sides and bottom of the bowl with a spatula then add the egg and mix til incorporated. Add the egg yolk, lemon juice, food coloring and vanilla extract and beat until combined.
With the mixer on low speed add the dry ingredients and mix until combined.
Pour the powdered sugar into a shallow bowl or pie plate. Add the optional additional granulated sugar to a seperate shallow bowl.
Use a 1½ tablespoon cookie scoop to scoop the cookie dough. Roll each portion into a ball then roll the cookie dough balls in the optional additional granulated sugar to coat. Next, roll each ball in the powdered sugar. Coat them completely with the powdered sugar. Do not shake off any excess powdered sugar. Place cookies 2 inches apart on the baking sheet. Bake about 12 cookies per half baking sheet.
Bake 10-12 minutes until cookies have crinkled and are puffed up. Let cool on the baking sheet for 10 minutes then transfer them to a rack to cool completely.